Monday, March 23, 2015

Large Cap 'Bull Traps' Not Quite Done

There was a small loss in the indices as Friday's gains consolidated. The S&P closed with a tweezer top, which is a reasonable marker for a bearish (and potentially trade-worthy) reversal. There are zones of support which will stall any decline, but for tomorrow, look for follow through losses.


The Russell 2000 closed with a bearish harami cross, which given what's gone before, is a reasonable marker for a near term top. There are no guarantees on this, but the risk:reward is good for a move to retest 1243.


The Nasdaq closed lower, but has managed to find support at 5008, which was the last swing high. There is also a MACD trigger 'strong buy' to work with too.


The Nasdaq 100 finished below the past swing high, but did manage a MACD trigger 'strong buy'. A move back to 4340 would appear preferable at this point, and there is a risk of a double top.


The Semiconductor Index also edged a MACD trigger 'buy', but is at risk of a double top.


For tomorrow, look for expansion on today's weakness across indices, but any decline will quickly encounter support.

You've now read my opinion, next read Douglas' and Jani's.

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. You can read what others are saying about Zignals on Investimonials.com.

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